According to Variety, Representative Darrell Issa from California recently wrote a letter to officials in Washington, DC, stating that Netflix’s possible acquisition of Warner Bros. Discovery’s HBO Max and its entertainment studio has raised concerns about antitrust laws and possible harm to consumers. The letter was dated November 13 and was sent to the following: U.S. Attorney General Pam Bondi, FTC Chairman Andrew Ferguson, and Gail Slater, the assistant attorney general for the Justice Department’s antitrust division.
Variety did receive a copy of the letter as well. The letter stated, “I am writing regarding recent and continuing reports that Netflix is seeking to acquire Warner Bros.Discovery’s studio and streaming properties. As you are aware, Netflix is already the dominant streaming platform in the United States and permitting it to absorb a major competitor raises concerns that could result in a harm to consumers. With more than 300 million global subscribers and a vast content library, Netflix currently wields unequaled market power. Adding both HBO Max’s subscribers and Warner Bros.’ premier content rights would further enhance this position, reportedly pushing the combined entity above a 30 percent share of the streaming market: a threshold traditionally viewed as presumptively problematic under antitrust law.”
Issa continues in his letter to the Trump administration, “Of further concern is that this consolidation would also diminish incentives to produce new content and major theatrical releases — evidenced by Netflix’s own statements dismissing movie theaters as ‘outdated’ — which could undermine opportunities for the full range of industry professionals both in front of and behind the camera…. I appreciate the Administration’s determined efforts to promote competitive markets and establish a record of regulatory common sense. I urge you continue to protect a critical American industry, enhance consumer choice, and safeguard vital American jobs.”
About a month ago, WBD stated that it had received acquisition interest from multiple parties. David Ellison of Paramount Skydance was one of the parties to have submitted a request for the acquisition. At the same time, Netflix and Comcast have been putting in their bids to WBD. November 20 is the deadline for all non-binding first bids from companies, in hopes that this will wrap up by the end of the year